Leo Mores Newspaper Leadership Institute

 

Understanding the Business of News

The changing landscape of news

“The Internet is poised to overtake newspapers as the 2nd largest US advertising medium by revenue behind TV”

PWC Global Entertainment and Media Outlook 2010-2014

“The future is here, it’s just not evenly distributed yet.”

--William Gibson

new technologi

es...

Stantum

Flexible Display Center at Arizona State

• 84.4% of users use the tablet to follow breaking news.

• predominantly affluent, well-educated men between 35-64 who tend to be early adopters

• 31% said they wouldn’t subscript to a print newspaper

• approx. 28 million sold to date

•70% of the New York Times’ registered online users are print subscribers.

•Avid online readers are likely to be professionals and also readers of printed news.

“The only thing dead is the

either/or nature of the musty print vs.

online debate... The hybrid future is kicking down

the door.”

Where does the revenue come from?

US Ad Spend By Medium

Revenue By Advertising Verticals

Media Share of US Advertising 1959-2009

Newspaper Ad Revenue and GDP (constant dollars)

Ad Revenue By Type (constant dollars)

Ad Revenue By Type (proportions)

Trends in News Access

Daily Newspaper Circulation (000)

Revenue and Circulation

Classified revenues moved from 18% in 1950

to 40% in 2000

Between 2000-2008, Craigslist had $100M in sales and evaporated $10B in classified ad

revenue.They did so with 30 employees.

The impact of the internet

Mobile Mobile advertising advertising

will will quadruple quadruple

from from $414M in $414M in

’09 ’09 toto

$1.6B in $1.6B in ’14’14

Now has nearly half as many readers in America as it does

at home.

1.moves information with zero variable cost, meaning no barriers to growth

2.Entry costs are low. Anyone with a computer can become a publisher.

25-34 year olds are the most active

online readers

Experimentation With New Business Models

•cut size

•cut news hole

•now covering the “meaning” of news

“In the future, high quality journalism will be funded and sponsored by non-profit organizations.”

New Newspaper Business Model: Create Compelling Graphic, Wait For Others To Use It... And Then Sue

Weathering The Storm

1.Maintain Community

Weathering The Storm

Community Influence

“Newspapers that survive will do so with some kind of hybrid content: analysis, interpretation and investigative reporting in a print product that appears less than daily, combined with constant updating and reader interaction on the web.”

The Vanishing Newspaper, Philip Meyer

Monetizing The Web

•Ann Arbor news closed and reopened as www.annarbor.com and revolves entirely around deals.

•www.MinnPost.com is largely supported by donors and launches a real-time ads feature

Coupons & Deals of the Day

Sponsor Posts

•Use advertising slots within the flow of posts. They look like regular posts on the site, but aren’t bylined and are written by the advertiser.

Video

•A number of organizations are experimenting with pre-roll ads and advertising bugs that appear on news videos.

Paid Content

•pairing subscriptions with micropayments (like iTunes - paying a nominal price for individual stories online).

•allowing 10 free stories and then reader hits the paywall.

Lists & Databases

•Selling data.

•A book of lists (top businesses by sector, fastest growing neighborhoods, etc.) makes a great annual print edition to grab premium advertising and boost brand awareness.

Mobile

•a fee for the mobile application carrying the latest news or a subscription for daily news alerts.

Print Editions

•www.myheimat.de -- uses a reverse publishing model to produce a weekly freesheet.

Specialized Advertising

Services•The idea is to provide advertising

consulting services. For a premium on top of an ad buy, the hyperlocal coordinates the business’ entire web presence.

Gift Cards

•The media company sells advertising in exchange for gift certificates. The reader then buys the gift card at just less than retail from the media company. Everyone gets a deal.

•AdBright

•BlogAds

•BlogHer

•Complex Media

•Federated Media

•Glam Media

Ad Networks•Lycos

•MOG Music Network

•ReachLocal

•ShortTail Media

•Yardbarker

•Glam Media

Content

http://www.time.com/time/magazine/article/0,9171,1877402,00.html

http://denispombriant.wordpress.com/2009/03/03/reinventing-the-newspaper-business-model-with-zuora/

http://www.washingtonpost.com/wp-dyn/content/article/2005/05/02/AR2005050201457.html

http://www.economist.com/node/7830218/print?story_id=7830218

http://businessjournalism.org/2010/03/21/new-models-for-delivering-the-news/

http://itstrategyblog.com/wall-street-journal%E2%80%99s-emerging-strategy/

http://www.ajr.org/article.asp?id=4605

Content

http://inma.org/modules/article/index.cfm?action=articleView&articleId=48629

http://www.forbes.com/2009/06/02/knight-foundation-alberto-ibarguen-business-media-alberto.html

http://www.techdirt.com/articles/20070129/082445.shtml

http://newsinnovation.com/

http://pewresearch.org/

http://www.naa.org/